SDI expands capacity, diversifies product mix

Steel Dynamics Inc. (SDI) announced Monday its plans to add additional production capacity to its minimill in Columbia City, Indiana. The $200 million investment will add 600'000 net tons in annual capacity as well as 150 new jobs. The added production capacity will allow the minimill, which currently produces mostly wide flange beams, to produce a greater volume of rail products, lighter weight structural shapes, and merchant bars to its product list. Specifically, modifications will be made to the existing caster to permit a higher volume of beam-blank and bloom production; an additional reheat furnace will be added; and a second rolling mill with associated material handling systems will also be added. Keith Busse, President and CEO of Steel Dynamics told press, "This is a very cost-effective investment, all of which we expect to be able to finance from operating cash flow over the construction period. While this investment will expand the capacity of the Columbia City facility, we are not appreciably increasing production capacity for wide flange beams, but are further diversifying the mill allowing us to produce new structural shapes while at the same time increasing the time available on the existing mill for the production of high quality rail. Construction is expected to take 18 months to complete, with the first shipments slated for 2007.